KMT finalizes cost-cutting proposals

The KMT yesterday finalized a set of downsizing plans to cut costs.

The measures, passed by the party's decision-making Central Standing Committee, involve cutting the pay of its staff by 3.3 percent to 17.5 percent starting next month and laying off 1,104 employees over a two-year period.

Under the pay-cut plan, the higher the rank held by an employee, the higher the percentage of cut he or she will be subject to.

Also, to encourage its staff to volunteer for early retirement, the party will offer favorable retirement benefits for those who do so by Aug. 31.

Chang Che-shen (張哲琛), director-general of the Administration and Management Committee, which worked out the measures, estimated that the pay-cut plan will help the party save NT$175 million per year.

The lay-off plan will save the party around NT$300 million per year, though the party will need to spend more than NT$1 billion on retirement benefits, in light of the large number of people already expressing their intention to retire, Chang said.

According to statistics provided by the KMT, the party has 2,100 full-time workers who are directly responsible for the party's operation. Another 700 hold miscellaneous posts, such as cleaners and drivers.

The party spends around NT$400 million per month on personnel expenses.

KMT Chairman Lien Chan (連戰) yesterday said the downsizing plans were hammered out by the party after an in-depth evaluation.

"The plans are an urgent necessity for the sustained development of the party," Lien said.

Lien said the KMT must restructure its organization to better prepare itself for the year-end Taipei and Kaohsiung mayoral elections and the 2004 presidential election.

To this end, the party needs to upgrade the effectiveness of its staff, recruit younger people to join the team, streamline its huge organization and encourage more volunteers to take up the party's work, Lien said.